LevelStock.com Newsletters March 19th, 2012
Traders,
My new pick is a China stock (OTCBB:SBAT) this is a low float stock (500K float) and it's rich in content. China Stocks are to out perform in 2012 and China's economy is the second largest in the world after that of the United States.
After spending most of last year in negative territory, Chinese stocks have the biggest upside potential in 2012, according to Cedric Ma, Senior Investment Strategist at Convoy Asset Management.
***The 52 week high for SBAT is $1.01 and if you look at the chart you'll see the wild swings "SBAT" has had over the last year.
***"SBAT" is fully reporting and trading at .07 as of today at close.
***"SBAT" anticipates to file an application to migrate to Nasdaq in year.
Here is the DD that has taken me several days to compile. I have researched SBAT from the front door to the back door. This stock has potential to retest highs.
SinoCubate, Inc. (OTCBB:SBAT) The Investment and Consultant Service Company
SinoCubate, Inc. (OTCBB:SBAT) main goal is to assist Chinese companies and their investors to prosper, and to produce successful companies that will qualify to become publicly listed companies, mainly in the United States. These incubator graduates have the potential to create jobs, revitalize neighborhoods, commercialize new technologies, and strengthen local and national economies in China and the United States. In accordance with SinoCubate's investment approach, they seek to invest in equity securities, primarily in Chinese -based, non-public-listed companies with an equity value of less than $50 million. SinoCubate’s investment objective is to maximize its value through the portfolio companies’s capital appreciation, thereby generating capital gains through liquidation of the equity investments in such companies. SinoCubate may also make investments in already publicly listed Chinese-based companies that we believe are undervalued and thereby suitable investment targets.
SinoCubate Investor Information
1. SinoCubate, Inc. is an American publicly listed company on the OTCBB in United States, which until the summer of 2011 was a shell company. 2. It is anticipated that SinoCubate will file an application to migrate to Nasdaq in 2012. 3. During the first three quarters of the year, the company files quarterly summary reports (10-Q) with the United States Securities and Exchanges Commission (“SEC”) and after the end of each year (the fourth quarter) SinoCubate files an annual report (10-K) describing the company’s activities during the past year in great detail.
4. SinoCubate, Inc. statements are reviewed for each of the first three quarters and audited annually by Schwartz Levitsky Feldman LLP "SLF" is registered with the United States Public Companies Accounting Oversight Board (“PCAOB”).
5. SBAT Share Structure Details a. Authorized 100 million
b. Outstanding 18.4 million
c. Trading Float 500k
Why SinoCubate’s business in China is thriving
During the past 10 years, China’s economy has gone from being the sixth to the second largest economy of the world, after the US, which is still number one. Following the slowdown in export of low priced products, to Europe and the US, it is now a focus for the Chinese central government to boost domestic consumption and accelerate the development of consumer related businesses.
Company Mission & Profit Centers
SinoCubate’s mission is to assist Chinese entrepreneurs and their investors to prosper.
SinoCubate's goal is to become the leading company in China, assisting Chinese entrepreneurs with financing and to become publicly listed in the United States.
Current situation, Red tape for listing in China
Currently, there are an estimated 3,000+ companies and growing; seeking a public listing in China, and the waiting list is about three years. Since listing in China, as compared to the US, has to go through an approval process, and not only a compliance procedure, the companies never know if they are going to achieve a domestic listing or not until a very late stage in their application process.
Therefore, many savvy entrepreneurs will seek a foreign listing as an alternative, and if so, the US is without doubt the most favorable option.
Allocation of Investments
Selections of Current Transactions
SinoCubate Target Clients
Clients should preferably be in a consumer related business, although other industries could be considered subject to an outstanding opportunity.
Clients should have 5 years of operating history with current management and make as a minimum, US$5 million net profit with a 30% historical and projected growth rate, and little or no debt.
"SBAT" currently has one client that plan to list in June, which will result in equity to SinoCubate worth in the range of US $7 – 10 million, plus two other clients, of which SinoCubate’s portion will be worth US $3-6 million.
SinoCubate Compensation
For the services, SinoCubate will typically charge between 7 – 15% of equity in the client company, corresponding to an ownership in the client company valued from $5 million and up, to be free trading 6 months after completion of each transaction. In addition, they may invest in the target company at an attractive valuation.
SinoCubate Services Provided
"SBAT" provides proper due diligence, pre-audit, analysis, financial models and investment materials as needed. They identify and acquire a shell company, pay for US and Chinese legal and USGAAP audit, provide acting CFO services and will handle the after-market support when the company is listed, and stay with the company as their adviser for a minimum of two years after the listing.
Management and staff
Tom Simeo
Chief Executive Officer
Tom Simeo, a corporate lawyer and investment banker, founded Viking Investments in 1993. Mr. Simeo has advised clients on international mergers and acquisitions as well as provided clients with funding exceeding several hundred million dollars. Mr. Simeo initiated, structured and participated in numerous successful reverse mergers and has been instrumental in obtaining public listings for several companies in the United States. Following the collapse of the Soviet Union in the early nineties, Mr. Simeo participated in the privatization process in Eastern Europe where he led a team of investors and advisers who successfully acquired previously state owned companies exceeding several hundred million dollars. Between the years of 1993 and 2004, based in New York City and London, Mr. Simeo initiated, advised and structured foreign investments in publicly listed companies in the United States and was a special counsel on international corporate finance to a New York City based law firm. From the early eighties to 1990, Mr. Simeo was a practicing lawyer in Sweden. Mr. Simeo is successfully establishing Viking Investments as a leader within cross continental reverse mergers between China and the United States. Mr. Simeo is a graduate (Jur. kand. Am. Juris Doctor equivalent) from the University of Lund, Sweden. Mr. Simeo has also studied law at Stockholm University and International Economy at Upsala University in Sweden.
Senior management of SinoCubate has over 20 years of experience from the capital markets. Out of his strategic insight, Mr. Simeo came to China, the biggest developing country in the world, to initiate the capital business.
The office in Shanghai employs business developers, analysts, financial advisers, accountants, execution staff and support personnel. For the complete listing of Officers and Directors continue reading SBAT's Management
For More Information, Visit SinoCubate, Inc. (OTCBB:SBAT)
Consider Taking Advantage of "SBAT" Since it's Trading Around Support Levels. China’s Stocks are already Advancing to a One-Week High.
Citibank expects China's GDP to grow 8.4 percent in 2012. China's economy is the second largest in the world after that of the United States.
